Everything You Need to Know About the Net Neutrality Ruling

A federal appeals court opened the way for broadband providers to charge content companies for faster speeds, striking down federal rules that had required equal treatment of Internet traffic. Here is a PDF of the ruling, and what some of the key passages mean.

The ruling also raises questions consumers. Here’s what you need to know.

What did the rules do?

The rules passed by the Federal Communications Commission – technically the Open Internet rules – said Internet providers couldn’t block legal content or applications, couldn’t unreasonably treat different types of traffic better or worse than the rest, and had to disclose information about how they bill for and manage Internet traffic.

Why did they get thrown out?

Basically, the FCC shot itself in the foot.

Last decade, the FCC decided broadband is an information service, not a telecommunication service, and therefore wasn’t subject to rules like those requiring phone companies to provide hookups to rivals and carry all traffic as long as it’s lawful. The court ruled the FCC’s Open Internet rules treated broadband service like phone service, and therefore the commission had violated its own finding.

So what does that mean for the price I pay for Internet service?

The specifics aren’t clear and are some ways off, but in all likelihood the Internet will gradually move from being a one-size-fits-all service to one where users or content companies can — or have to — pay more for better service or higher volumes of traffic.

That means it’s possible some users might get hit with extra charges if they are heavy users of bandwidth. But it’s also possible Internet service providers begin shifting costs from consumers to Web firms such as Netflix or Google, which could keep your Internet price from rising but perhaps make you pay more for online services.

What will this do to the quality of the Internet?

It’s possible that certain websites will perform better once they are able to pay service providers for faster delivery. It’s unlikely that Internet service providers would degrade the quality of other websites, but it isn’t outside the realm of possibility.

Sites that don’t pay for faster delivery could look relatively worse compared with rivals that do opt for better service. Consumer advocates worry that without net neutrality, the Internet will eventually develop two lanes: a fast lane for big Web firms that can afford to pay for better service and a slow lane for others that can’t.

Will I still be able to access all the websites I want to?

The court tossed out the “no blocking” provision of the net neutrality rules, so it’s technically possible that some websites might become inaccessible. Phone and cable companies may not want to risk antagonizing their customers, however. Comcast, Verizon and AT&T all have said they are committed to keeping the Internet open and that they won’t block websites. But you’ll be relying on their promises and sense of self interest.

Does this mean the FCC has lost oversight over the Internet?

No. A key part of the ruling was that the FCC does have authority over how service providers treat Internet traffic. Exercising that authority will take more work, however.

How soon will the Internet feel the impact of this ruling?

Not for some time in all likelihood. The FCC raised the possibility of appealing the ruling to the Supreme Court, which is likely to chill any major initiatives until a decision is sorted out.

It’s also possible that the FCC may try to reclassify broadband as a “telecommunication service,” which would open the door for a whole host of regulations, including net neutrality rules. That in turn could spark a big political fight.

There are also technical issues that need to be worked out before phone and cable companies can charge websites for faster service. In any event, this fight is likely far from over.